Manufacturers will now be allowed to undertake wholesale distribution of drinks, thereby encouraging the availability of quality brands and improving supply chains. Previously, this provision was not in force.
“A simplified duty structure has been introduced with a single duty framework at wholesale and retail levels,” the official spokesperson said.
Previously, multiple task structure at wholesale and retail level.
A uniform excise duty of Rs 500 per LPL has been fixed across all IMFL brands to prevent revenue leakage and simplify administration.
To optimize excise revenue, the annual fee for a wholesale license has been increased from the existing Rs 3.5 lakh to Rs 5 lakh.
The base price for retailers has also been revised.
The base price in Leh municipal wards has been fixed at Rs. 60 lakhs, while in other areas, it has been fixed at Rs. 30 ALL.
The profit margin of retailers has also been reduced from the existing 12% to 10%.
“The new excise policy has effected a major reform by disrupting the existing regime,” the spokesman said.
In the existing regime, tourism registration was mandatory for hotels to get a liquor license, but now only GST registration would be enough to get an excise license.
But non-GST registered hotels will be required to provide FSSAI or tourist registration.
According to LG Saxena, the revised excise policy seeks to create a balanced and pragmatic framework that addresses public concerns, strengthens regulatory oversight, facilitates tourism and economic activity, prevents illegal trade and contributes to reducing drug addiction through legal and regulated channels.
Considering environmental concerns, the new policy bans the sale of liquor in plastic bottles and stipulates that liquor be sold only in approved glass bottles, PET bottles and tin cans.
“The new policy requires licensees to employ any person over the age of 21 to assist in the liquor business, thereby increasing employment opportunities for all,” the official spokesperson said.
The policy envisages that retailers will be set up only after ensuring compliance with the prescribed norms regarding distance of 100 meters from religious places, educational institutions, hospitals and public parks, as per Government of India guidelines.
